The enormous variety of goods and services that we consume each day can be attributed mainly to:
A) government regulations.
B) home production.
C) specialization and trade.
D) early craftsmen handing down their knowledge.

Question

Quizplus · Accepted Answer

Specialization and trade allow for a division of labor where individuals or firms focus on producing specific goods or services in which they have a comparative advantage, and then trade with others for the goods and services they need. This results in a wide variety of goods and services being available in the market. The other options, government regulations, home production, and early craftsmen, may have played a role in the past, but the main driver of variety in today's economy is specialization and trade.

The Enormous Variety of Goods and Services That We Consume